Difference Between MR21 and MR22 Transaction

Introduction

MR21 and MR22 are essential SAP transactions used for adjusting material prices. While both are related to material price updates, they serve different purposes and function differently. In this guide, we will explore the key differences between MR21 and MR22, their impact on material pricing, and practical examples to help you understand their usage.

Understanding MR21 Transaction in SAP

What is MR21?

MR21 is used to manually change the price of a material in SAP. It directly updates the moving average price (MAP) or standard price, depending on the material master settings.

How MR21 Works

  • You enter a new price for a material.
  • The system directly overwrites the existing price without considering stock quantity.
  • It is useful when a company wants to update material costs manually.

Example of MR21

Assume we have the following material details:
 
Material No. Current Price
ZZZZZZZ $20.00

Using MR21, if we want to change the price to $23.00 or $25.00, we can directly enter the new price, and the system will update it accordingly.

Understanding MR22 Transaction in SAP

What is MR22?

MR22 is used to adjust the total value of a material in SAP. Instead of directly changing the price, it updates the material’s total value based on stock quantity and cost adjustments (debit or credit).

How MR22 Works

  • You enter an amount that needs to be added or subtracted.
  • The system calculates the new price by distributing the adjustment over the stock quantity.
  • It maintains consistency between stock value and quantity.

Example of MR22

Assume we have the following material details:
 
Material No. Price Quantity Total Value
ZZZZZZ $0.17 191 $31.57

If we add $100.00 using MR22, the new values will be:
 
Material No. New Price Quantity New Total Value
ZZZZZZ $0.69 191 $131.57

The new price is calculated as: 

131.57 ÷ 191 = 0.69
Similarly, you can decrease the value by entering a negative adjustment.

Key Differences Between MR21 and MR22

Feature MR21 MR22
Function Direct price change Price adjustment via stock value
Stock Quantity Consideration No Yes
How Price is Updated Overwrites price Recalculates price based on stock
Impact on Accounting Immediate price change Adjusts stock value and price
Usage Example Changing the standard cost manually Adjusting cost due to valuation corrections

When to Use MR21 vs. MR22?

  • Use MR21 when you need to directly set a new price for a material, regardless of stock.
  • Use MR22 when you need to adjust the material cost based on existing stock quantity.

Conclusion

Both MR21 and MR22 are crucial SAP transactions for managing material prices, but they work differently. MR21 directly updates the price, while MR22 adjusts the value and recalculates the price based on stock. Understanding these differences ensures accurate financial and inventory management in SAP.

Frequently Asked Questions (FAQs)

1. Can I reverse a price change in MR21?

No, MR21 directly changes the price. To correct it, you need to run MR21 again with the correct price.

2. Does MR22 affect stock quantity?

No, MR22 adjusts the stock value but does not change the stock quantity.

3. Which transaction should I use for correcting wrong material valuation?

MR22 is best for valuation corrections as it adjusts stock value without overriding the price.

4. Can I use MR22 to set a specific price?

No, MR22 works by adjusting the stock value. The final price is calculated automatically.

5. Can I use MR22 to set a specific price?

No, MR22 works by adjusting the stock value. The final price is calculated automatically.

6. What happens if I enter a negative value in MR22?

A negative value will decrease the stock value, leading to a lower price per unit.

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